The recent BRICS summit in Fortaleza, Brazil, saw the first meeting held between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping.

Both leaders pledged to work towards a solution to their long-standing border dispute. Mr Modi described the talks as extremely fruitful, while Mr Xi extolled India as a long-lasting friend.

The meeting reflects the continuation of an upturn in Sino-Indian relations since Mr Modi’s ascension to power in India. The positive developments have led observers to ask whether there will be a shift in dynamics between the world’s two largest developing economies.

To couch the question in Chinese parlance: Are we seeing the emergence of a “new” type of major power relations between China and India?

CHINDIANOMICS

A factor that may play an increasingly bigger role in shaping China-India ties is economics.

Commercial relations between these Asian giants are still relatively modest. Sino-Indian trade of around US$65 billion (S$81.3 billion) last year is a trickle in the context of a combined annual gross domestic product of more than US$10 trillion. Last year, bilateral trade recorded a decrease for the second year running. This situation may soon change.

Mr Modi, who has campaigned successfully on promises of India’s economic rejuvenation, will look towards Beijing as a viable source of cooperation for achieving the “Indian dream”.